MRDC confirms royalty transfer for its beneficiaries from BPNG Trust Account
The Mineral Resources Development Company (MRDC) confirms that the Central Bank of Papua New Guinea has released accrued royalty payments for PNG LNG Project area landowners into their Trusts, which it manages.
MRDC is mandated under the Oil & Gas Act to manage benefits for project area landowners in petroleum projects in the country.
Under the benefits sharing arrangements reached at the UBBSA in Kokopo, prior to commencement of the PNG LNG Project, the royalty benefits are paid to the Government (into a trust account held at BPNG), which then releases it to its main beneficiaries: the landowners (70%), and the Hela, Southern Highlands, Gulf, Western and Central provincial governments and impacted local Level Governments (30%).
In accordance with the Oil & Gas Act, and benefits – sharing agreement reached in 2009, royalty and equity benefits for landowners are to be split in the 40:30:30 formula, where 40% is paid as cash benefit to benefitting clans, 30% invested in Future Generation Fund (Investment), and 30% in Community Infrastructure Trust Fund (social development projects).
MRDC Managing Director and CEO Mr Augustine Mano, CBE, welcomed the release of the royalty benefits.
“The release of the royalty payments is great news for landowners. The early release of these benefits to a number of these groups have been delayed by clan disputes and court cases.
“For Hides PDL1 landowners, this is timely. MRDC will proceed to complete the clan bank account opening and director elections exercise so payment can be made before the end of the year.
“This exercise commenced in April 2024 but was suspended due to a restraining order from the court obtained by a party. This case has now been resolved, and the restraining order lifted, clearing the way for us to resume.”
For Hides PDL7 landowners, royalty benefits for 2014 – 2021, and equity benefits for 2014 – 2017 have been paid. Their royalty (2022 – current) and equity (2018 – current) benefits will now be paid with the release of their royalty entitlement.
This also includes the Pipeline, and the Plant Site landowners.
Royalty and equity benefits for PDL 2 (Kutubu), and PDL 3 & 4 (Gobe) will be withheld pending the resolution of a number of disputes which are currently in place.
With the opening of the new MRDC Office in Tari, Hela Province, last week Friday, Mr Mano said that all royalty and equity benefits processing for Hela Landowner will now be handled in Tari, not in Port Moresby.
“I want to encourage all landowners and their clan leaders who are in Port Moresby to return home. We have an office in Tari now. Cooperate and work with us on the ground in Tari for the benefit of everyone.”
The Account Opening and Directors Elections Process for the Angore (PDL8) landowners will commence as soon as the PDL1 exercise is completed, while a Ministerial Determination is pending for the landowners of Juha (PDL8).